|
|
How to Avoid Becoming a Victim of Mortgage Rescue Scams
RISMEDIA—For a homeowner facing the frightening threat of foreclosure, the offer seems too good to be true. A “mortgage rescue” company steps forward, claiming to be able to help you save your credit and your home.
In some cases, the “mortgage rescue” company provides phantom help offering to work as an intermediary with lenders, collecting an up-front fee for services it never provides or that homeowners easily could have done on their own for free.
In other scams, the “mortgage rescuer” may offer to pay off the delinquent loan and allow homeowners to stay on as renters, with the possibility of buying the home back later. But the scam artist doesn’t make the payments and homeowners, who have signed over their deed, end up losing the home and any equity they had in it.
“People who are facing foreclosure need to know there are reputable organizations and industry professionals who can help them turn things around,” said Michael Golden, president of the @properties. “A good rule of thumb to remember is if something sounds too good to be true, it probably is.”
Beth Llewellyn, CEO of the Partnership for HomeOwnership, cautions homeowners facing possible foreclosure to be careful of scams, particularly in Illinois’ larger metropolitan areas. Her information for homeowners facing foreclosure can be found online at www.YourIllinoisHome.com, a consumer site for buyers and sellers developed by the Illinois Association of REALTORS®.
Llewellyn suggests that homeowners who find themselves falling behind on their mortgage payments contact their mortgage lender immediately to see if the loan can be restructured or refinanced before they have been delinquent on their payments for three months and formal foreclosure proceedings have begun.
At-risk homeowners are encouraged to contact a HUD-certified housing counselor who can help walk them through their options. Reputable counselors can be found through the HUD website at www.hud.gov or by calling 1-800-569-4287. HUD-certified counselors also can be contacted through the Hope Now Alliance homeowner hotline at 1-888-995-HOPE (4673) or its website at www.hopenow.com.
Homeowners also might want to contact an attorney about their legal options or a local Realtor to get more information regarding fair market housing values.
Illinois did institute tougher guidelines on “mortgage rescue” companies with the Mortgage Rescue Fraud Act in 2007. The law requires that “rescue” companies give homeowners a written contract, which the homeowner can cancel at any time, listing the services they will perf
|
| |
| |
| |
Announcements |
|
| |
| |
GRAR urges you to contact a REALTOR® today to learn more about why now is a great Time2Buy. Click here to learn more.
*A first time buyer is defined as anyone who has not owned a main home in the last three years.
|
|
|
|
|
|
